Here’s why some people may sell their home in the next 5 years in Canada

It has been a tough few years for homeowners, with rising mortgage costs and increases in the cost of living in Canada.

But most people still want to stay in the real estate market, according to a new survey from digital real estate platform Wahi.

The Bank of Canada key interest rate climbed to five per cent last summer, which has resulted in higher mortgage costs. This, coupled with an increase in the cost of living, is putting pressure on homeowners.

The key interest rate recently went down to 4.75 per cent but the rates are still taking a toll on those with high mortgages.

With these issues in mind, Wahi’s 2024 Home Seller Intentions survey asked people across Canada whether they plan to put their homes on the market over the next several years and, if so, why.

Overall, one in 10 homeowners (11 per cent) who say they will be selling within the coming five years are doing so at least in part because of financial strain or debt repayments, including on mortgages, the survey found.

“While it’s a challenging time whenever someone is forced to sell their home, the survey results indicate that this remains relatively uncommon in the Canadian housing market compared to other reasons for selling,” says Wahi CEO Benjy Katchen.

The biggest reason people want to sell is for downsizing (37 per cent), according to the survey.

“The fact that downsizing is a priority for so many home sellers only makes sense given Canada’s aging population,” Katchen explains, noting just one per cent of downsizers were aged 18 to 34 and 30 per cent were aged 35 to 54.

Of home sellers who are downsizing, the majority (69 per cent) were aged 55 and up.

Next is upsizing at 25 per cent and relocating also at 25 per cent.

Some 94 per cent of those looking to upsize are 18 to 54 years old, with only six per cent of 55-plus expressing these intentions.

Of those people who plan to sell due to relocation, the most common reason behind the move is looking for a better quality of life (53 per cent).

Those who live in rural communities are more likely to say they are looking for a better quality of life (62 per cent) than their urban counterparts (51 per cent).

The survey was done by Wahi from May 10 to 14, 2024, among a representative sample of 1,501 online Canadians who are members of the Angus Reid Forum. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20.

For the full report, see the post here.